Maintain long positions. The FCPO’s upside movement was once again blocked by the MYR5,000 resistance, despite climbing MYR11.00 to close at MYR4,927. Initially, the commodity saw positive sentiment emerge, opening stronger at MYR4,950 and progressing towards the session’s high of MYR4,995. However, the bullish momentum faltered in the final hour, with the commodity giving up its intraday gains to close at MYR4,927. The latest session reaffirms that strong selling pressure exists at the MYR5,000 level. With the RSI indicator staying flat, the momentum remains weak. Hence, expect more consolidation movement between the range of MYR4,850 and MYR5,000. In the event the MYR4,850 level gives way, expect market sentiment to turn negative again. At this stage, we stick to our positive trading bias until the downside support is breached.

Traders are advised to retain the long positions, which were initiated at MYR4,899, or the closing level of 17 Nov. To protect the downside risks, the stop-loss has been placed at MYR4,850.

The immediate support remains at MYR4,850, followed by MYR4,700. On the upside, the nearest resistance is kept at MYR5,000, followed by MYR5,069, or the high of 19 Nov.

Source: RHB Securities Research - 26 Nov 2021